Failed Redemption of Preference Shares: Whether a Contractual Debt?
– Sikha Bansal, Partner and Megha Mittal, Associate (resolution@vinodkothari.com) Preference shares, as the nomenclature suggests, represent that part of a Company’s capital which carries ‘preference´ vis-à-vis equity shares, with respect to payment of dividend and repayment of capital in case of winding up. However, the real position of preference shares may be quite baffling, given that […]
